Friday, February 17, 2012

After 6 years: Wage & Hour Class action suit against Novartis settled for $99M!!!

So Novartis isn't waiting for the US Supreme Court ruling and is settling the wage and hour class action lawsuit for $99Million!

Novartis says its pharmaceutical sales representatives fit the "outside sales" exemption of the Fair Labor Standards Act (FLSA).  The plaintiffs didn't agree and felt they were unlawfully classified as exempt and denied overtime. The $99 million is an award for the eligible class members of nearly 7,000 and 30% in attorney's fees.

The class members averaged total compensation of $91,500 and they worked an average of 10 to 20 hours of overtime each week.

The settlement includes resolving overtime claims, meal periods and/or compensation for rest breaks, will provide itemized wage statements, maintain and keep accurate records, pay employees in a timely manner during or at the conclusion of their employment and provide compensation for off the clock time.

The decision is still to be made by the US Supreme Court.  This case has been litigating for nearly six years.

I pulled the detail information from several sources including press, trade magazines, attorney notices.  
This case will have a ripple effect. The impact of a law designed in the 1930's for the jobs of today will continue to create issues between employees and their organizations. More on that at a later time.